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Private sector Lakshmi Vilas Bank said on Monday it has exposure to an IL&FS subsidiary and the loans to the company are standard. Lakshmi Vilas Bank said it had received certain queries from investors seeking clarification on the bank’s exposure to the IL&FS group.
“In this regard, the bank clarifies that our bank has an exposure to an IL&FS subsidiary, which is currently standard,” the bank said in a regulatory filing.
“Due to business constraints, we are unable to share further customer specific data,” the bank said.
Infrastructure Leasing & Financial Services (IL&FS) group defaulted on a series of interest payments earlier this month. On September 4, it came to light that IL&FS had defaulted on a short-term loan of Rs 1,000 crore from SiDBI, while one of its subsidiaries also defaulted on Rs 500 crore dues to the development financial institution.
IL&FS, which is credited with building the longest tunnel in the country (the Chenani-Nashri tunnel), is sitting on a debt pile of around Rs 91,000 crore and was downgraded to junk status by rating agencies following the default. Of this, Rs 57,000 crore are bank loans alone, most of which are from state-run lenders.
Shares of Lakshmi Vilas Bank closed 0.79 per cent higher at Rs 89 on BSE.
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